Anadarko buying Gulf of Mexico assets for $2 billion

Anadarko Petroleum is planning to snap up offshore property in the Gulf of Mexico for $2 billion in a deal that doubles the company’s foothold in the Lucius deep-water field.

The Woodlands-based oil explorer said Monday it expects the transaction with seller Freeport-McMoran to close in the fourth quarter, bringing its working interest in the field from about 25 percent to almost 50 percent. That means Anadarko will be able to sell an additional 80,000 barrels of oil equivalent a day out of the Gulf of Mexico.

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Anadarko started pumping oil from the Lucius field in 2015 after it deployed its 23,000-ton truss spar, a 110-foot diameter floating cylindrical hull, floating above a field with 300 million barrels of oil buried under 7,200 feet of water. That facility can handle about 80,000 barrels of oil a day.

Anadarko said its purchase would generate $3 billion in incremental free cash flow at current crude prices, which would help the company to bolster double production in the Delaware Basin in West Texas and the DJ Basin in Colorado to more than 600,000 barrels of oil equivalent a day by 2021.

Anadarko also announced it plans to sell 35.2 million shares in a secondary stock offering to pay for the acquisition.